Other Charges (Gains), net |
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| Other Charges (Gains), net | Other Charges (Gains), net
Other charges (gains), net consisted of the following (in thousands):
Gain on Sale of Restaurant Property
During the year to date period of fiscal 2025, the Company sold three restaurant properties for total proceeds of $5.8 million that resulted in a gain, net of expenses of $1.1 million. The net proceeds are included within cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows and were used to repay long-term debt.
During the year to date period of fiscal 2024, the Company sold ten restaurant properties for total proceeds of $23.9 million in a sale-leaseback transaction that resulted in a gain, net of expenses of $7.4 million. The net proceeds are included within cash flows from investing activities on the Condensed Consolidated Statements of Cash Flows.
Asset Impairment and Restaurant Closure Costs, net
During the second quarter and year to date periods of fiscal 2025, the Company recognized $1.1 million and $2.1 million, respectively, of rent and other costs associated with approximately ten closed locations. In addition, the Company recognized non-cash impairment charges of $0.7 million in the second quarter and year to date periods of fiscal 2025, related to restaurant closures. These charges were offset by net lease remeasurement gains of $3.5 million and $4.2 million in the second quarter and year to date periods of fiscal 2025, respectively, related to early lease terminations and other modifications to lease terms.
During the second quarter and year to date periods of fiscal 2024, the Company recognized $0.4 million and $0.6 million, respectively, of rent and other costs associated with approximately twelve closed locations. In addition, the Company recognized non-cash impairment charges of $1.1 million in the second quarter and year to date periods of fiscal 2024, related to restaurant closures. These charges were offset by net lease remeasurement gains of $0.0 million and $2.1 million in the second quarter and year to date periods of fiscal 2024, respectively, related to early lease terminations and other modifications to lease terms.
Severance and Executive Transition
During the second quarter and year to date periods of fiscal 2025, the Company recorded approximately $3.1 million and $4.2 million, respectively, in executive severance and transition costs associated with changes in executive leadership positions. These charges were offset in part by a stock-based compensation benefit of $3.9 million and $4.1 million, respectively, related to the forfeiture of unvested stock-based compensation by executive leadership. In addition, the Company incurred severance costs primarily related to a reduction in force of Team Members of approximately $1.3 million during the second quarter of fiscal 2025.
During the second quarter and year to date periods of fiscal 2024, the Company incurred severance costs of $0.1 million and $1.1 million, respectively, primarily associated with a reduction in force of Team Members.
As of July 13, 2025, $4.3 million is included in Accrued payroll and payroll related liabilities in the condensed consolidated balance sheet related to the reduction in force and executive transition costs described above.
Asset Disposal and Other
Asset disposal and other primarily relates to the closure of a corporate office location, asset disposals, strategic projects and other non-recurring items.
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